Central Banks Now Own A Third Of The Entire $54 Trillion Global Bond Market


Zero Hedge: Global equity volatility, both implied and realized, has tumbled to record lows, sliding below levels not even seen before the 2008 financial crisis, there was a far simpler reason for the plunge in vol: trading was slowly grinding to a halt.

Over the weekend, J P Morgan confirmed as much observing that, among other things, it was the retrenchment of active managers, who are being crowded out by central bank QE in the bond space and a shift towards ETFs in the equity space, that acts as long-term depressant of market volatilitymore …

Opinion: The Federal Reserve can create money. The primary way the Fed does so is by buying and selling U.S. Treasury securities on the open market.  For example:

  • When the Fed buys $10 million of Treasury bills on the open market, it credits the selling banks’ reserve accounts for $10 million.
  • Since the reserves didn’t come from another bank, one could say they were created out of “thin air.”

There was a time when each dollar bill you owned was backed by an ounce of gold, hence the expression ‘sound as a dollar’. 

In 1971 President Richard Nixon cancelled the direct convertibility of the dollar to gold. That is why a car that cost $3000 dollars in 1971 now costs $30-40,000. And that is why the government of the United Stats is able to finance wasteful social programs and endless wars.

The dollar is no longer sound. If the government runs out of money, no problemo – the Federal Reserve will print more. The reason the dollar is still revered is because every other nation is so much worse off.

There is no real money in the world. The European Central Bank (ECB), Bank of Japan (BOJ), and the Peoples Bank of China are doing the same thing.

Thomas Jefferson wrote: “I believe that banking institutions are more dangerous to our liberties than standing armies”.

I know I repeat many of the same Scripture verses. I probably have 1000 posts on Revelation 6:5-6. It is becoming obvious how John’s revelation will finally happen.

The government keeps financing medical and social programs and wars that we can’t afford, and central bankers keep providing the money.

The money is fake but the debt is real (Deuteronomy 15:6; Proverbs 22:7), and one day when it will collapses, a global leader with all the answers will take over.